Compound Interest Calculator

Estimate the growth of your investment over time using lump-sum amount, monthly contributions and different compounding frequencies.

What Is Compound Interest?

Compound interest is interest earned on both the original principal and the accumulated interest from previous periods. This creates exponential growth, making long-term investing highly rewarding.

How This Compound Interest Calculator Helps

This calculator supports:

  • Lump-sum one-time investment
  • Monthly contributions (SIP)
  • Multiple compounding frequencies
  • Yearly breakdown with full details
  • Chart showing principal vs interest growth

Compound Interest Formula

Future Value (FV):

FV = P × (1 + r)n

  • P = Principal
  • r = Rate per compounding period
  • n = Number of periods

Future Value of Monthly SIP:

FVSIP = PMT × [((1 + r)n − 1) ÷ r]

Example of Compounding

Example:

  • Principal: 100000
  • Monthly Contribution: 2000
  • Rate of Return: 10%
  • Duration: 10 years

After 10 years, your total investment becomes 340000 and the estimated future value exceeds 500000.

Benefits of Compound Interest

  • Accelerates long-term wealth growth
  • Boosted returns when combining lump-sum + SIP
  • Simplifies retirement and goal planning
  • Ideal for comparing different investment strategies

Input Rules & Limits

  • Principal Amount: 1000 – 20000000
  • Monthly Contribution: 0 – 10000000
  • Expected Rate of Return: 1% – 100%
  • Years: 0 – 100
  • Months: 0 – 11
  • Total Tenure: 1 – 1200 months
  • Compounding Frequency: Monthly, Quarterly, Half-Yearly, Yearly

Frequently Asked Questions (FAQs)

Compound interest is interest earned on both principal and previously accumulated interest, enabling faster long-term growth.
SIP is a fixed monthly investment. Each contribution compounds over time, significantly boosting long-term returns.
More frequent compounding (monthly) typically provides higher growth compared to yearly compounding.
Investments are subject to market performance. Compounding accelerates growth, but return rates are not fixed.
The longer you stay invested, the more powerful compounding becomes, especially after 7–10 years.